Bsa 310 Wk3

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Category: Business and Industry

Date Submitted: 09/13/2011 06:26 PM

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Kudler Fine Foods is an upscale market providing specialty foods to the Sand Diego area. Like any good business, Kudler’s primary objectives are to increase profit while providing customer satisfaction and maintain a competitive edge. To achieve these objectives Kudler must find new marketing strategies to benefit both the company and the consumer. One of the ideas the sales and marketing department wants to see to implemented is the inclusion of a Frequent Shopper Program, which will allow Kudler to distribute customer rewards while tracking customer spending (Apollo Group, 2009). However, to implement this program the legal, ethical, financial, and security concerns must first be addressed.

Legal Concerns

If Kudler wishes to implement the Frequent Shopper Program, it will create a larger opportunity for ecommerce (electronic commerce). There are many financial benefits to using ecommerce, but there are also some legal risks to consider prior to launching the program. The Federal Trade Commission (FTC) and Federation of European Direct and Interactive Marketing (FEDMA) have been working together since 1999 to make online shopping safe for consumers (FDMA/FTC, 2009). Certain regulations have been put in place for this purpose. For example, there is specific information any company wishing to participate in ecommerce must provide to the consumer. The company must also allow the consumer to choose if he or she wishes to opt-in or opt-out of the online service or if they wish to send the customer e-mail the must also have consent (Federation of European Direct and Interactive Marketing, 2011). Regulations are set in place that control advertisements or promotions and any business participating in ecommerce must also consider the customers local tax laws (Federal Trade Commission, 2000). Customers must also be allowed to view and consent to the terms and conditions of the Frequent Shopper Program (Federal Trade...